Reckitt Benckiser announced today that its Chief Executive Laxman Narasimhan will step down at the end of this month after three years in the role.
The UK-based consumer goods group said he had decided to relocate back to the US “for personal and family reasons” and to pursue “an opportunity that enables him to live there”.
Nicandro Durante, a senior independent director at Reckitt who was previously Chief Executive of BAT for eight years until 2019, will take over temporarily while the company seeks a permanent replacement.
After joining Reckitt in September 2019 from PepsiCo, Narasimhan implemented a strategy that has led to an improvement in the group’s performance, boosted partly by raised demand for its cleaning and health products during the pandemic.
Reckitt, which owns brands such as Dettol, Lysol, Nurofen and Durex, stated that it will continue to implement its current strategy under Durante. However, shares in the company dropped nearly 5% in early trading on news of Narasimhan’s departure.
Martin Deboo, an analyst at Jefferies, is quoted by the FT saying: “Narasimhan has attracted a dedicated following for his turnaround and investment plan, and we expect the announcement of his departure to be a cause for concern amongst holders of Reckitt.”
Alicia Forry, an analyst at Investec, noted that investors would be reassured by the presence of Jeff Carr, Chief Financial Officer, who “has been able to deliver the productivity savings ahead of schedule and is widely admired by the market. He would be a safe pair of hands alongside an incoming Chief Executive (or could even be considered for the Chief Executive role himself).”
The group said its Chairman Chris Sinclair and the nomination committee had started the process to identify the “best long-term candidate to take Reckitt on its next phase of growth”.
“On behalf of the entire board, I want to thank Laxman for leading the organization through a significant transformation over the last three years. We wish him and his family all the very best as he fulfils his desire to return to the United States,” said Sinclair.
“We are also very fortunate to be able to appoint Nicandro Durante as our CEO. Having worked closely with Nicandro since I joined the Board, I have no doubt that he will provide the leadership needed for Reckitt at this important stage of transformation while we find the right long-term leader for the business.”
In July, the company raised its annual revenue forecast after price increases helped the company to beat its second-quarter sales expectations.
